Alternative Investment skeptic; investor advocate
'Merica
Joined September 2015
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NJ 10-year PE returns: around the same as global equities, way worse than their own benchmark.
but yeah lets make sure all 'mericans get access to this!
NJ 10-year PE returns: around the same as global equities, way worse than thier own benchmark.
but yeah lets make sure all 'mericans get access to this!
What does an investment organization, already invested in Private Equity, do when the prospects for PE returns weakens?
Here is a partial list of options:
1. Stop benchmarking Private Assets, inlcluding when paying bonuses;
2. Rely on Wilshire's PE forecasts that might appear to be PE forecasts but are actually a forecast for above-average PE managers;
3. Share asset class results from Private equity that appear to leave out important costs;
If you like, you can do all three of these and more!
The AltView is on Substack, and its FREE!
thealtview.substack.com/
Bluerock's Private Real Estate Fund (BPRE) has some problems.
1. Increasing fees for reasons that don’t track…
2. Soon after having told investors they could expect to pay less…
3. While investors are feeling acute pain…
Is a bad look.
No wonder the activists are circling.
Upcoming "progress report" webinar from Bluerock on Oct 6 might be interesting.
us06web.zoom.us/webinar/regi…
The AltView Substack (100% free)
thealtview.substack.com/p/bl…
🤖 Made with AI
Iowa PERS shows us all how how to max out bonuses...by changing the benchmarks.
In 2023, comp formula was based on actual weightings.
PE was underperforming; in 2024, the formula was changed to favor other stuff. Then, in 2025, PE got fully disappeared.
This is 'adding value'?
Full article on the AltView substack! ALL FREE..
thealtview.substack.com/p/ip…
IPERS "Beta and Switch":
Iowa PERS says its “Beta Management Overlay,” Which sounds an awful lot like a way to keep asset class weightings in line, somehow adds to asset class alpha. This seems impossible.
In fact, it's a leveraged index futures strategy which has no business being benchmarked to equities at all…..
Unless you are desperately seeking "alpha"….
@DMRegister @LetsJett @FT @WSJ
thealtview.substack.com/p/io…
NOW OPEN!
JPMorgan's Volatility Laundromat.
Powered By PRIVATE EQUITY Detergent.
Doesn't clean, but FEELS GOOD!
JPMorgan says:
1. 86% of the total investment universe is private equity, and
2. Adding private equity can reduce volatility...
and then shows a cool chart to illustrate how performance can be improved.
EXCEPT: adding plain old (liquid, flexible, low cost) public equities would have helped performance MORE.
h/t Cliff Asness
@LeylaKuni @NickNemo17 @Ritholtz
The AltView substack gives you that fresh, deep clean (sorry about the bumpiness):
thealtview.substack.com/p/jp…
🤖 Made with AI
Respectfully I’d argue the analogy doesn’t play. Not because it’s not accurate, but because —even now—it is Not consistent w how investors talk/behave.
Ppl w/in the industry sort of say it’s hard but don’t fully grapple w it.
Another great The Wall Street Journal column from Jason Zweig.
To the list of questions, including those contributed by Mark J. Higgins and @LeylaKuni, we'd add (for private equity-focused funds):
1. By what increment do you expect this fund to outperform public markets?
with the follow up:
2. By what amount have your funds historically outperformed public markets?
Both of these questions should get a written response.
Worth noting that because performance of PE has recently been weaker, managers are increasingly focused on the fact that investing in private equity (the way they measure it) REDUCES the risk of a portfolio. Don't laugh! They are very good salespeople. We've seen the same thing with hedge funds.
"Come for the returns, stay for the diversification."
Gift link:
wsj.com/finance/investing/wh…
